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distribution method. Reach out
to our industry’s great packaging
suppliers and share your vision
with them. ey can be amazing
resources to help you package
your campaign.
I developed a program some
time back where I purchased
some pizza cutters at a substantial
discount because the supplier
was discontinuing the item.
I packaged a pizza cutter in a
pizza box (also discounted by
the vendor because it was a
self-promotion) and targeted 12
potential buyers whom I wanted
to reach. If I had not told the
supplier it was a self-promotion
and had not used a closeout
item, the piece would have cost
me about $25; instead my cost
was about $7. e results of the
campaign generated $27,000 in
initial business at a 54-percent
gross pro t. e long-term value
of that inexpensive campaign was
approximately $175,000 at more
than 50-percent gross pro t.
ink about how you can
parlay this example into pro t
when creating marketing
campaigns for your clients;
it is the same principle as a
self-promotion. For example,
I developed a campaign for a
foot doctor who was trying to
increase referrals. He had a
$2,000 budget. We used a plush
bear on closeout decorated
with a hangtag and materials
bought at a hobby shop. My cost,
using closeout merchandise
and the e orts of some great
vendors, cost me $350. I charged
$1,945 and realized a pro t
margin of 64.8 percent. e best
thing was the result: the client
showed a 45-percent increase
in referrals the next quarter as a
direct result of the campaign.
Your Ultimate Exposure
All of this said, keep in mind
that everyone is going to have
a di erent idea of what being
“pro table” is to them. I ask you
to think before you provide a
quote to a client. Be sure you have
included all the value-add items
and remember your exposure.
Your exposure is your cost of
goods; you are responsible for
that. For example, if you sell a
$1,000 order and your pro t
is 25 percent, your exposure
is $750. On the contrary, if
you sell it at 50-percent pro t,
your exposure is only $500.
Also consider what would
happen to your pro ts if you
sold exactly the same dollar
amount as you did last year but
with di erent margins. Look
at the potential incremental
e ect on your bottom line.
For every $100,000 in sales:
• A ve-percent increase in
margin puts an additional
$5,000 in your pocket
• A 10-percent increase
in margin gives you
$10,000 more in pro t
• A 15-percent increase
nets you $15,000
By adding value and
selling solutions, along with
selling products, you can see
amazing jumps in your pro ts.
What could you do with an
additional $500, $1,000 or
even $2,000 in your pocket?
umping your chest and
bragging about what you sold
de nitely feeds the ego, but
selling pro tably at every
opportunity, by selling your
creativity, value and innovation
… that feeds families.
Cli Quicksell, Jr., MAS+,
serves both as a consultant and
acting director of marketing for
distributor iPROMOTEu. He
has been in the promotional
industry for more than 30 years in
various capacities. Additionally,
Quicksell is president of his own
international speaking and
consulting company, speaking,
coaching and consulting on ways
and methods that companies can
grow, expand and prosper. He has
helped and spoken to audiences
in more than eight countries and
has published two books and
more than 800 articles on sales,
marketing and creativity. He can
be reached at 301-717-0615, via
email at cli @quicksellspeaks.
com or on his LinkedIn pro le.
LearnMore
Tips To Small-
Business
Pro tability
Cliff Quicksell,
MAS+, will present
“Ten Small Secrets
To Small-Business
Success And
Pro tability” during
The PPAI Expo in
Las Vegas. In this
one-hour session,
you’ll discover how
to get out from
under the A-B-C
pricing stigma, learn
to reevaluate your
brand’s current look,
feel and positioning,
and understand
how to move your
business upward
with increased sales
and pro ts. Add the
free session to your
show schedule on
Thursday, January
12 from 9-10 am at
the Mandalay Bay
Convention Center.
Potential
Incremental E ect On
Your BottomLine
For every $100,000 in sales:
5%
increase in margin
$5,000
in your pocket
10%
increase in margin
$10,000
in your pocket
15%
increase in margin
$15,000
in your pocket